Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. However, operating cash flow weakened sharply from the prior quarter, resulting in a negative free cash flow margin, though this margin improved from the deeply negative level a year ago.
- Operating cash flow was minimal relative to revenue, and capital expenditure exceeded it, producing a negative free cash flow. The free cash flow margin was negative, a marked deterioration from the prior quarter's positive margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially lower, while capital expenditure was also lower. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$13.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$13.8M
Cash generated by operations before capital spending.
CapEx
$27.0M
Capital spending and related asset purchases.
FCF margin
-0.2%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-03-31 | $6.0B | $489.4M | $32.0M | $457.4M | 7.7% |
| 2024-06-30 | $6.2B | $519.4M | $38.4M | $481.0M | 7.8% |
| 2024-09-30 | $6.0B | $684.8M | $56.6M | $628.2M | 10.5% |
| 2024-12-31 | $6.0B | $13.8M | $27.0M | -$13.2M | -0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -0.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow volatility
Operating cash flow dropped to a very low level compared to the prior quarter, while revenue remained unchanged. This shift overwhelmed the reduction in capital expenditure and flipped free cash flow from positive to negative.
The large swing in operating cash flow is the primary reason for the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was minimal relative to revenue, and capital expenditure exceeded it, producing a negative free cash flow. The free cash flow margin was negative, a marked deterioration from the prior quarter's positive margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially lower, while capital expenditure was also lower. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, and the free cash flow margin improved.
Monitor the trajectory of operating cash flow, as it experienced a sharp decline from the prior quarter despite stable revenue.